Nationwide Insurance Dropped R1T Coverage

[RealBillNye]

When people can’t get insurance in high fire zone areas here in CA they need to go to the state and it is definitely not cheaper. Despite my annoyance with insurance companies it’s obnoxiously expensive compared to what the market provides.

I hear you, but the reason that the state offered insurance is so expensive is because they are only insuring the highest risk population.

Sponsored

 

[TheWoo]

Whelp… If insurance companies are gonna keep playing this game, they’ll be forcing states to create state-funded (ahem! Social) insurance. And then, they’ll whine about unfair competition.

If it was profitable to insure people at lower prices, a company would offer it. But it isn't. Insurance is a straight numbers business. These companies wouldn't be exiting markets if there was a way to make money. But the loss risk is just too high.

It's frustrating as a consumer but I also get it.

 

[ParkCityEV]

Insurance in general is just a super tough business right now. Between the cost of repairs (skyrocketing on vehicles and rising on homes), more weather events in the middle of the country (hail/wind events) and fires out west, it's hard for the companies to make money.

I expect it to continue getting worse.

Should the mission of an insurance company be to spread the risk/cost out amongst millions of customers or to maximize profits? It used to be the former, but now it’s the latter. Maximizing profits requires that you identify customers that have the lowest or no risk (supported by an algorithm based on limited data) and charge them high rates or insurance they don’t need.

 

[ParkCityEV]

When you say chip repairs, do you mean rock chips on the paint?

If so, I’m not surprised. Given the current state of the insurance industry, at least here in California, I wasn’t willing to use my homeowners insurance for a water leak that caused a few thousand dollars in damage. Sadly I’d rather not be dropped in the current state of affairs, so I’m saving any insurance claims for the unlikely meaningful “event “.

rock chip on glass - to prevent full replacement.

Sponsored